II 

115TH CONGRESS 

1ST SESSION S. 1136 

To improve the structure of the Federal Pell Grant program, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 16, 2017 

Ms. HIRONO (for herself, Mrs. MURRAY, Mr. REED, Mr. WHITEHOUSE, Ms. 

WARREN, and Mr. SCHATZ) introduced the following bill; which was read 

twice and referred to the Committee on Health, Education, Labor, and 

Pensions 

A BILL 

To improve the structure of the Federal Pell Grant program, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Pell Grant Preserva5 tion and Expansion Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) The United States needs individuals with 

9 the knowledge, skills, and abilities that enable them 


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1 to thrive as educated citizens in society and success2 fully participate in an interconnected economy. 

3 (2) Investments in higher education through 

4 student aid such as the Federal Pell Grant program 

5 under section 401 of the Higher Education Act of 

6 1965 (20 U.S.C. 1070a) help students and families 

7 reach, afford, and complete education and training 

8 opportunities beyond high school. 

9 (3) The Federal Pell Grant program is the larg10 est source of federally funded grant aid for postsec11 ondary education. 

12 (4) The Federal Pell Grant program allows mil13 lions of people of the United States to attend college 

14 and is especially vital to students of color. Three in 

15 5 African American undergraduate students, and 

16 one-half of all Latino undergraduate students, rely 

17 on the Federal Pell Grant program. 

18 (5) The Federal Pell Grant program should 

19 continue to be a reliable source of funding for aspir20 ing students, their families, and future generations 

21 that they can count on to be there for them when 

22 they seek higher education. 

23 (6) To stabilize Federal Pell Grant funding and 

24 ensure the grant will continue to serve millions of 

25 students now and in the future, the program should 


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1 become a fully mandatory program that grows with 

2 inflation. 

3 (7) Protecting surplus funds, restoring prior eli4 gibility cuts, and expanding access to underserved 

5 students will give millions of students and families 

6 the critical student aid support they need and de7 serve. 

8 SEC. 3. TABLE OF CONTENTS; REFERENCES. 

9 (a) TABLE OF CONTENTS.—The table of contents of 

10 this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Findings. 

Sec. 3. Table of contents; references. 

Sec. 4. Funding Federal Pell Grants through mandatory funding. 

Sec. 5. Restoring Federal Pell Grant eligibility for borrower defense. 

Sec. 6. Federal Pell Grant eligibility for DREAMer students. 

Sec. 7. Repeal of suspension of eligibility under the Higher Education Act of 

1965 for grants, loans, and work assistance for drug-related offenses. 

Sec. 8. Extending Federal Pell Grant eligibility of certain short-term programs. 

Sec. 9. Providing Federal Pell grants for Iraq and Afghanistan veteran’s dependents. 

Sec. 10. Increasing support for working students by 35 percent. 

Sec. 11. Increasing the Federal Pell Grant auto-zero threshold. 

Sec. 12. Raising the total semesters of Federal Pell Grant eligibility. 

Sec. 13. Conforming amendments. 

Sec. 14. Effective date. 

11 (b) REFERENCES.—Except as otherwise expressly 

12 provided, whenever in this Act an amendment or repeal 

13 is expressed in terms of an amendment to, or repeal of, 

14 a section or other provision, the reference shall be consid15 ered to be made to a section or other provision of the 

16 Higher Education Act of 1965 (20 U.S.C. 1001 et seq.). 


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1 SEC. 4. FUNDING FEDERAL PELL GRANTS THROUGH MAN2 DATORY FUNDING. 

3 (a) MANDATORY FUNDING; REINSTATING ELIGI4 BILITY FOR INCARCERATED INDIVIDUALS.—Section 401 

5 (20 U.S.C. 1070a) is amended— 

6 (1) in subsection (a)(1), by striking ‘‘through 

7 fiscal year 2017’’; 

8 (2) in subsection (b)— 

9 (A) by striking paragraphs (1), (6), and 

10 (7); 

11 (B) by redesignating paragraph (8) as 

12 paragraph (7); 

13 (C) by striking subparagraph (A) of para14 graph (2); 

15 (D) by redesignating subparagraph (B) of 

16 paragraph (2) as paragraph (2); 

17 (E) by inserting before paragraph (2) (as 

18 redesignated by subparagraph (D)) the fol19 lowing: 

20 ‘‘(1) AMOUNT.—The amount of the Federal Pell 

21 Grant for a student eligible under this subpart shall be— 

22 ‘‘(A) the maximum Federal Pell Grant de23 scribed in paragraph (6); less 

24 ‘‘(B) the amount equal to the amount deter25 mined to be the expected family contribution with 

26 respect to such student for such year.’’; 


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1 (F) in paragraph (4), by striking ‘‘max2 imum amount of a Federal Pell Grant award 

3 determined under paragraph (2)(A)’’ and in4 serting ‘‘maximum Federal Pell Grant described 

5 in paragraph (6)’’; 

6 (G) in paragraph (5), by striking ‘‘max7 imum amount of a Federal Pell Grant award 

8 determined under paragraph (2)(A)’’ and in9 serting ‘‘maximum amount of a Federal Pell 

10 Grant award described in paragraph (6)’’; 

11 (H) by inserting after paragraph (5) the 

12 following: 

13 ‘‘(6) MAXIMUM FEDERAL PELL GRANT.— 

14 ‘‘(A) AWARD YEAR 2018–2019.—For award 

15 year 2018–2019, the maximum Federal Pell 

16 Grant shall be $6,420. 

17 ‘‘(B) SUBSEQUENT AWARD YEARS.—For 

18 award year 2019–2020 and each subsequent 

19 award year, the maximum Federal Pell Grant 

20 shall be equal to the total maximum Federal 

21 Pell Grant for the preceding award year under 

22 this paragraph— 

23 ‘‘(i) increased by the annual adjust24 ment percentage for the award year for 


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1 which the amount under this subparagraph 

2 is being determined; and 

3 ‘‘(ii) rounded to the nearest $5. 

4 ‘‘(C) DEFINITION OF ANNUAL ADJUST5 MENT PERCENTAGE.—In this paragraph, the 

6 term ‘annual adjustment percentage,’ as applied 

7 to an award year, is equal to the estimated per8 centage increase in the Consumer Price Index 

9 (as determined by the Secretary, using the defi10 nition in section 478(f)) for the most recent cal11 endar year ending prior to the beginning of that 

12 award year.’’; and 

13 (I) in paragraph (7), as redesignated by 

14 subparagraph (B), by striking ‘‘may exceed’’ 

15 and all that follows through the period and in16 serting ‘‘may exceed the maximum Federal Pell 

17 Grant available for an award year.’’; 

18 (3) in subsection (f)— 

19 (A) in paragraph (1), by striking the mat20 ter preceding subparagraph (A) and inserting 

21 the following: ‘‘After receiving an application 

22 for a Federal Pell Grant under this subpart, the 

23 Secretary (including any contractor of the Sec24 retary processing applications for Federal Pell 

25 Grants under this subpart) shall, in a timely 


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1 manner, furnish to the student financial aid ad2 ministrator at each institution of higher edu3 cation that a student awarded a Federal Pell 

4 Grant under this subpart is attending, the ex5 pected family contribution for each such stu6 dent. Each such student financial administrator 

7 shall—’’; and 

8 (B) in paragraph (3)— 

9 (i) by striking ‘‘after academic year 

10 1986–1987’’; and 

11 (ii) in paragraph (3), by striking ‘‘the 

12 Committee on Appropriations of the Sen13 ate, the Committee on Appropriations of 

14 the House of Representatives, and’’; 

15 (4) by striking subsections (g) and (h); 

16 (5) by redesignating subsections (i) and (j) as 

17 subsections (g) and (h), respectively; and 

18 (6) by adding at the end the following: 

19 ‘‘(k) APPROPRIATION OF FUNDS.—There are author20 ized to be appropriated, and there are appropriated, out 

21 of any money in the Treasury not otherwise appropriated, 

22 such sums as may be necessary for fiscal year 2017 and 

23 each subsequent fiscal year to provide the maximum Fed24 eral Pell Grant for which a student shall be eligible under 

25 this section during an award year.’’. 


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1 (b) REPEAL OF SCORING REQUIREMENT.—Section 

2 406 of H. Con. Res. 95 (109th Congress) is amended— 

3 (1) by striking subsection (b); and 

4 (2) by striking ‘‘(a) IN GENERAL.—Upon’’ and 

5 inserting the following: ‘‘Upon’’. 

6 SEC. 5. RESTORING FEDERAL PELL GRANT ELIGIBILITY 

7 FOR BORROWER DEFENSE. 

8 Section 401(c)(5) (20 U.S.C. 1070a(c)(5)) is amend9 ed— 

10 (1) by striking ‘‘(5) The period’’ and inserting 

11 the following: ‘‘(5) MAXIMUM PERIOD.— 

12 ‘‘(A) IN GENERAL.—Except as provided in 

13 subparagraph (B), the period’’; and 

14 (2) by adding at the end the following: 

15 ‘‘(B) EXCEPTION.— 

16 ‘‘(i) IN GENERAL.—Any Federal Pell 

17 Grant that a student received during a pe18 riod described in subclause (I) or (II) of 

19 clause (ii) shall not count towards the stu20 dent’s duration limits under this para21 graph. 

22 ‘‘(ii) APPLICABLE PERIODS.—Clause 

23 (i) shall apply with respect to any Federal 

24 Pell Grant awarded to a student to attend 

25 an institution— 


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1 ‘‘(I) during a period— 

2 ‘‘(aa) for which the student 

3 received a loan under this title; 

4 and 

5 ‘‘(bb) for which the loan de6 scribed in item (aa) is forgiven 

7 under— 

8 ‘‘(AA) section 437(c)(1) 

9 or 464(g)(1) due to the clos10 ing of the institution; 

11 ‘‘(BB) section 455(h) 

12 due to the student’s success13 ful assertion of a defense to 

14 repayment of the loan; or 

15 ‘‘(CC) section 

16 432(a)(6), section 685.215 

17 of title 34, Code of Federal 

18 Regulations (or a successor 

19 regulation), or any other 

20 loan forgiveness provision or 

21 regulation under this Act, as 

22 a result of a determination 

23 by the Secretary or a court 

24 that the institution comVerDate Sep 11 2014 06:16 May 17, 2017 Jkt 069200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1136.IS S1136

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1 mitted fraud or other mis2 conduct; or 

3 ‘‘(II) during a period for which 

4 the student did not receive a loan 

5 under this title but for which, if the 

6 student had received such a loan, the 

7 student would have qualified for loan 

8 forgiveness under subclause (I)(bb).’’. 

9 SEC. 6. FEDERAL PELL GRANT ELIGIBILITY FOR DREAMER 

10 STUDENTS. 

11 Section 484 (20 U.S.C. 1091) is amended— 

12 (1) in subsection (a)(5), by inserting ‘‘, or be a 

13 Dreamer student, as defined in subsection (u)’’ after 

14 ‘‘becoming a citizen or permanent resident’’; and 

15 (2) by adding at the end the following: 

16 ‘‘(u) DREAMER STUDENTS.— 

17 ‘‘(1) IN GENERAL.—In this section, the term 

18 ‘Dreamer student’ means an individual who— 

19 ‘‘(A) was younger than 16 years of age on 

20 the date on which the individual initially en21 tered the United States; 

22 ‘‘(B) has provided a list of each secondary 

23 school that the student attended in the United 

24 States; and 


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1 ‘‘(C)(i) has earned a high school diploma, 

2 the recognized equivalent of such diploma from 

3 a secondary school, or a high school equivalency 

4 diploma in the United States or is scheduled to 

5 complete the requirements for such a diploma 

6 or equivalent before the next academic year be7 gins; 

8 ‘‘(ii) has acquired a degree from an institu9 tion of higher education or has completed not 

10 less than 2 years in a program for a bacca11 laureate degree or higher degree at an institu12 tion of higher education in the United States 

13 and has made satisfactory academic progress, 

14 as defined in subsection (c), during such time 

15 period; 

16 ‘‘(iii) at any time was eligible for a grant 

17 of deferred action under— 

18 ‘‘(I) the June 15, 2012, memorandum 

19 from the Secretary of Homeland Security 

20 entitled ‘Exercising Prosecutorial Discre21 tion with Respect to Individuals Who 

22 Came to the United States as Children’; or 

23 ‘‘(II) the November 20, 2014, memo24 randum from the Secretary of Homeland 

25 Security entitled ‘Exercising Prosecutorial 


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1 Discretion with Respect to Individuals 

2 Who Came to the United States as Chil3 dren and with Respect to Certain Individ4 uals Who Are the Parents of U.S. Citizens 

5 or Permanent Residents’; or 

6 ‘‘(iv) has served in the uniformed services, 

7 as defined in section 101 of title 10, United 

8 States Code, for not less than 4 years and, if 

9 discharged, received an honorable discharge. 

10 ‘‘(2) HARDSHIP EXCEPTION.—The Secretary 

11 shall issue regulations that direct when the Depart12 ment shall waive the requirement of subparagraph 

13 (A) or (B), or both, of paragraph (1) for an indi14 vidual to qualify as a Dreamer student under such 

15 paragraph, if the individual— 

16 ‘‘(A) demonstrates compelling cir17 cumstances for the inability to satisfy the re18 quirement of such subparagraph (A) or (B), or 

19 both; and 

20 ‘‘(B) satisfies the requirement of para21 graph (1)(C).’’. 


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1 SEC. 7. REPEAL OF SUSPENSION OF ELIGIBILITY UNDER 

2 THE HIGHER EDUCATION ACT OF 1965 FOR 

3 GRANTS, LOANS, AND WORK ASSISTANCE FOR 

4 DRUG-RELATED OFFENSES. 

5 (a) REPEAL.—Subsection (r) of section 484 (20 

6 U.S.C. 1091(r)) is repealed. 

7 (b) REVISION OF FAFSA FORM.—Section 483 of the 

8 Higher Education Act of 1965 (20 U.S.C. 1090) is 

9 amended by adding at the end the following: 

10 ‘‘(i) CONVICTIONS.—The Secretary shall not include 

11 any question about the conviction of an applicant for the 

12 possession or sale of illegal drugs on the FAFSA (or any 

13 other form developed under subsection (a)).’’. 

14 (c) CONFORMING AMENDMENTS.—The Act (20 

15 U.S.C. 1001 et seq.) is amended— 

16 (1) in section 428(b)(3) (20 U.S.C. 

17 1078(b)(3))— 

18 (A) in subparagraph (C), by striking 

19 ‘‘485(l)’’ and inserting ‘‘485(k)’’; and 

20 (B) in subparagraph (D), by striking 

21 ‘‘485(l)’’ and inserting ‘‘485(k)’’; 

22 (2) in section 435(d)(5) (20 U.S.C. 

23 1085(d)(5))— 

24 (A) in subparagraph (E), by striking 

25 ‘‘485(l)’’ and inserting ‘‘485(k)’’; and 


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1 (B) in subparagraph (F), by striking 

2 ‘‘485(l)’’ and inserting ‘‘485(k)’’; 

3 (3) in section 484 (20 U.S.C. 1091), as amend4 ed by section 6, by redesignating subsections (s),(t), 

5 and (u) as subsections (r), (s), and (t), respectively; 

6 (4) in section 485 (20 U.S.C. 1092)— 

7 (A) by striking subsection (k); and 

8 (B) by redesignating subsections (l) and 

9 (m) as subsections (k) and (l), respectively; and 

10 (5) in section 487(e)(2)(B)(ii)(IV) (20 U.S.C. 

11 1094(e)(2)(B)(ii)(IV)), by striking ‘‘(l) of section 

12 485’’ and inserting ‘‘(k) of section 485’’. 

13 SEC. 8. EXTENDING FEDERAL PELL GRANT ELIGIBILITY OF 

14 CERTAIN SHORT-TERM PROGRAMS. 

15 (a) IN GENERAL.—Section 401 (20 U.S.C. 1070a), 

16 as amended by section 4, is further amended by inserting 

17 after subsection (h) the following: 

18 ‘‘(i) JOB TRAINING FEDERAL PELL GRANT PRO19 GRAM.— 

20 ‘‘(1) DEFINITIONS.—In this subsection: 

21 ‘‘(A) ELIGIBLE CAREER PATHWAY PRO22 GRAM.—The term ‘eligible career pathway pro23 gram’ means a program that— 

24 ‘‘(i) meets the requirements of section 

25 484(d)(2); 


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1 ‘‘(ii) is a program of training services 

2 listed under section 122(d) of the Work3 force Innovation and Opportunity Act (29 

4 U.S.C. 3152(d)); and 

5 ‘‘(iii) is part of a career pathway, as 

6 defined in section 3 of such Act (29 U.S.C. 

7 3102). 

8 ‘‘(B) JOB TRAINING PROGRAM.—The term 

9 ‘job training program’ means a career and tech10 nical education program at an institution of 

11 higher education that— 

12 ‘‘(i) provides not less than 150, and 

13 not more than 600, clock hours of instruc14 tional time over a period of not less than 

15 8, and not more than 15, weeks; 

16 ‘‘(ii) provides training aligned with 

17 the requirements of employers in the State 

18 or local area, which may include in-demand 

19 industry sectors or occupations, as defined 

20 in section 3 of the Workforce Innovation 

21 and Opportunity Act (29 U.S.C. 3102), in 

22 the State or local area (as defined in such 

23 section); 

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1 vider of training services, listed under sec2 tion 122(d) of such Act (29 U.S.C. 

3 3152(d)); 

4 ‘‘(iv) provides a student, upon comple5 tion of the program, with a recognized 

6 postsecondary credential, as defined in sec7 tion 3 of such Act, that is recognized by 

8 employers in the relevant industry, includ9 ing credentials recognized by industry or 

10 sector partnerships in the State or local 

11 area where the industry is located; 

12 ‘‘(v) has been determined, by the in13 stitution of higher education, to provide 

14 academic content, an amount of instruc15 tional time, and a recognized postsec16 ondary credential that are sufficient to— 

17 ‘‘(I) meet the hiring requirements 

18 of potential employers; and 

19 ‘‘(II) satisfy any applicable edu20 cational prerequisite requirement for 

21 professional licensure or certification, 

22 so that the student who completes the 

23 program and seeks employment quali24 fies to take any licensure or certifi25 cation examination needed to practice 


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1 or find employment in an occupation 

2 that the program prepares students to 

3 enter; 

4 ‘‘(vi) may include integrated or basic 

5 skills courses; and 

6 ‘‘(vii) may be offered as part of an eli7 gible career pathway program. 

8 ‘‘(2) IN GENERAL.—For the award year begin9 ning on July 1, 2018, and each subsequent award 

10 year, the Secretary shall carry out a program 

11 through which the Secretary shall award job training 

12 Federal Pell Grants to students in job training pro13 grams. Each job training Federal Pell Grant award14 ed under this subsection shall have the same terms 

15 and conditions, and be awarded in the same manner, 

16 as a Federal Pell Grant awarded under subsection 

17 (a), except as follows: 

18 ‘‘(A) A student who is eligible to receive a 

19 job training Federal Pell Grant under this sub20 section is a student who— 

21 ‘‘(i) has not yet attained a bacca22 laureate degree or postbaccalaureate de23 gree; 

24 ‘‘(ii) attends an institution of higher 

25 education; 


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1 ‘‘(iii) is enrolled, or accepted for en2 rollment, in a job training program at such 

3 institution of higher education; and 

4 ‘‘(iv) meets all other eligibility re5 quirements for a Federal Pell Grant (ex6 cept with respect to the type of program of 

7 study, as provided in clause (iii)). 

8 ‘‘(B) The amount of a job training Federal 

9 Pell Grant for an eligible student shall be deter10 mined under subsection (b)(1), except that— 

11 ‘‘(i) the maximum Federal Pell Grant 

12 awarded under this subsection for an 

13 award year shall be 50 percent of the max14 imum Federal Pell Grant awarded under 

15 subsection (b)(5) applicable to that award 

16 year; and 

17 ‘‘(ii) subsection (b)(4) shall not apply. 

18 ‘‘(3) INCLUSION IN TOTAL ELIGIBILITY PE19 RIOD.—Any period during which a student receives 

20 a job training Federal Pell Grant under this sub21 section shall be included in calculating the student’s 

22 period of eligibility for Federal Pell Grants under 

23 subsection (c), and any regulations under such sub24 section regarding students who are enrolled in an 

25 undergraduate program on less than a full-time 


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1 basis shall similarly apply to students who are en2 rolled in a job training program at an eligible insti3 tution on less than a full-time basis.’’. 

4 (b) ADDITIONAL SAFEGUARDS.—Section 496(a)(4) 

5 (20 U.S.C. 1099b(a)(4)) is amended— 

6 (1) in subparagraph (A), by striking ‘‘and’’ 

7 after the semicolon; 

8 (2) in subparagraph (B)(ii), by inserting ‘‘and’’ 

9 after the semicolon; and 

10 (3) by adding at the end the following: 

11 ‘‘(C) if such agency or association has or 

12 seeks to include within its scope of recognition 

13 the evaluation of the quality of institutions of 

14 higher education participating in the job train15 ing Federal Pell Grant program under section 

16 401(i), such agency or association shall, in ad17 dition to meeting the other requirements of this 

18 subpart, demonstrate to the Secretary that, 

19 with respect to such job training programs— 

20 ‘‘(i) the agency or association’s stand21 ards include a process for determining 

22 whether the program provides training 

23 aligned with the requirements of employers 

24 in the State or local area served by the 

25 program; and 


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1 ‘‘(ii) the agency or association re2 quires a demonstration that the program— 

3 ‘‘(I) has identified each recog4 nized postsecondary credential offered 

5 and the corresponding industry or sec6 tor partnership that actively recog7 nizes each credential in the relevant 

8 industry in the State or local area 

9 where the industry is located; and 

10 ‘‘(II) provides the academic con11 tent and amount of instructional time 

12 that is sufficient to— 

13 ‘‘(aa) meet the hiring re14 quirements of potential employ15 ers; and 

16 ‘‘(bb) satisfy any applicable 

17 educational prerequisites for pro18 fessional licensure or certification 

19 requirements so that the student 

20 who completes the program and 

21 seeks employment qualifies to 

22 take any licensure or certification 

23 examination that is needed to 

24 practice or find employment in 


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1 an occupation that the program 

2 prepares students to enter;’’. 

3 SEC. 9. PROVIDING FEDERAL PELL GRANTS FOR IRAQ AND 

4 AFGHANISTAN VETERAN’S DEPENDENTS. 

5 (a) AMENDMENTS.—Part A of title IV (20 U.S.C. 

6 1070a et seq.) is amended— 

7 (1) in section 401, as amended by section 8, by 

8 inserting after subsection (i) the following: 

9 ‘‘(j) SCHOLARSHIPS FOR VETERAN’S DEPEND10 ENTS.— 

11 ‘‘(1) DEFINITION OF ELIGIBLE VETERAN’S DE12 PENDENT.—In this subsection, the term ‘eligible vet13 eran’s dependent’ means a dependent or an inde14 pendent student— 

15 ‘‘(A) whose parent or guardian was a 

16 member of the Armed Forces of the United 

17 States and died as a result of performing mili18 tary service in Iraq or Afghanistan after Sep19 tember 11, 2001; and 

20 ‘‘(B) who, at the time of the parent or 

21 guardian’s death, was— 

22 ‘‘(i) less than 24 years of age; or 

23 ‘‘(ii) enrolled at an institution of high24 er education on a part-time or full-time 

25 basis. 


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1 ‘‘(2) GRANTS.— 

2 ‘‘(A) IN GENERAL.—The Secretary shall 

3 award a Federal Pell Grant, as modified in ac4 cordance with the requirements of this sub5 section, to each eligible veteran’s dependent to 

6 assist in paying the eligible veteran’s depend7 ent’s cost of attendance at an institution of 

8 higher education. 

9 ‘‘(B) DESIGNATION.—Federal Pell Grants 

10 made under this subsection may be known as 

11 ‘Iraq and Afghanistan Service Grants’. 

12 ‘‘(3) PREVENTION OF DOUBLE BENEFITS.—No 

13 eligible veteran’s dependent may receive a grant 

14 under both this subsection and subsection (a). 

15 ‘‘(4) TERMS AND CONDITIONS.—The Secretary 

16 shall award Iraq and Afghanistan Service Grants 

17 under this subsection in the same manner and with 

18 the same terms and conditions, including the length 

19 of the period of eligibility, as the Secretary awards 

20 Federal Pell Grants under subsection (a), except 

21 that— 

22 ‘‘(A) the award rules and determination of 

23 need applicable to the calculation of Federal 

24 Pell Grants under subsection (a) shall not apply 

25 to Iraq and Afghanistan Service Grants; 


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1 ‘‘(B) the provisions of paragraph (1)(B) 

2 and (3) of subsection (b), and subsection (f), 

3 shall not apply; 

4 ‘‘(C) the maximum period determined 

5 under subsection (c)(5) shall be determined by 

6 including all Iraq and Afghanistan Service 

7 Grants received by the eligible veteran’s de8 pendent, including such Grants received under 

9 subpart 10 before the effective date of this sub10 section; and 

11 ‘‘(D) an Iraq and Afghanistan Service 

12 Grant to an eligible veteran’s dependent for any 

13 award year shall equal the maximum Federal 

14 Pell Grant available under subsection (b)(5) for 

15 that award year, except that an Iraq and Af16 ghanistan Service Grant— 

17 ‘‘(i) shall not exceed the cost of at18 tendance of the eligible veteran’s depend19 ent for that award year; and 

20 ‘‘(ii) shall be adjusted to reflect the 

21 attendance by the eligible veteran’s de22 pendent on a less than full-time basis in 

23 the same manner as such adjustments are 

24 made for a Federal Pell Grant under sub25 section (a). 


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1 ‘‘(5) ESTIMATED FINANCIAL ASSISTANCE.—For 

2 purposes of determinations of need under part F, an 

3 Iraq and Afghanistan Service Grant shall not be 

4 treated as estimated financial assistance as de5 scribed in sections 471(3) and 480(j).’’; and 

6 (2) by striking subpart 10 of part A (20 U.S.C. 

7 1070h). 

8 (b) EFFECTIVE DATE; TRANSITION.— 

9 (1) EFFECTIVE DATE.—The amendments made 

10 by this section shall take effect with respect to the 

11 award year immediately following the date of enact12 ment of this Act. 

13 (2) TRANSITION.—The Secretary shall take 

14 such steps as are necessary to transition from the 

15 Iraq and Afghanistan Service Grants program under 

16 subpart 10 of part A of title IV of the Higher Edu17 cation Act of 1965 (20 U.S.C. 1070h), as in effect 

18 on the day before the effective date of this section, 

19 and the Iraq and Afghanistan Service Grants pro20 gram under section 401(j) of the Higher Education 

21 Act of 1965 (20 U.S.C. 1070a(j)), as amended by 

22 this section. 


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1 SEC. 10. INCREASING SUPPORT FOR WORKING STUDENTS 

2 BY 35 PERCENT. 

3 (a) DEPENDENT STUDENTS.—Section 475(g)(2)(D) 

4 (20 U.S.C. 1087oo(g)(2)(D)) is amended to read as fol5 lows: 

6 ‘‘(D) an income protection allowance (or a 

7 successor amount prescribed by the Secretary 

8 under section 478) of $9,010 for academic year 

9 2018–2019;’’. 

10 (b) INDEPENDENT STUDENTS WITHOUT DEPEND11 ENTS OTHER THAN A SPOUSE.—Section 476(b)(1)(A)(iv) 

12 (20 U.S.C. 1087pp(b)(1)(A)(iv)) is amended to read as 

13 follows: 

14 ‘‘(iv) an income protection allowance 

15 (or a successor amount prescribed by the 

16 Secretary under section 478)— 

17 ‘‘(I) for single or separated stu18 dents, or married students where both 

19 are enrolled pursuant to subsection 

20 (a)(2), of $14,010 for academic year 

21 2018–2019; and 

22 ‘‘(II) for married students where 

23 one is enrolled pursuant to subsection 

24 (a)(2), of $22,460 for academic year 

25 2018–2019;’’. 


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1 (c) INDEPENDENT STUDENTS WITH DEPENDENTS

2 OTHER THAN A SPOUSE.—Section 477(b)(4) (20 U.S.C. 

3 1087qq(b)(4)) is amended to read as follows: 

4 ‘‘(4) INCOME PROTECTION ALLOWANCE.—The 

5 income protection allowance is determined by the fol6 lowing table (or a successor table prescribed by the 

7 Secretary under section 478), for academic year 

8 2018–2019: 

‘‘Income Protection Allowance 

Family 

Size 

Number in College 

(including 

student) 

1 2 3 4 5 

For each 

additional 

subtract: 

2 $35,470 $29,410 $6,030

3 44,170 38,130 $32,070 

4 54,540 45,490 42,450 $36,370 

5 64,360 58,280 52,240 46,190 $40,160 

6 75,260 69,210 63,190 57,090 51,070 

For each 

additional 

add: 8,500 ’’. 

9 (d) UPDATED TABLES AND AMOUNTS.—Section 

10 478(b) (20 U.S.C. 1087rr(b)) is amended— 

11 (1) in paragraph (1), by striking subparagraphs 

12 (A) and (B) and inserting the following: 

13 ‘‘(A) IN GENERAL.—For each academic 

14 year after academic year 2018–2019, the Sec15 retary shall publish in the Federal Register a 

16 revised table of income protection allowances 

17 for the purpose of sections 475(c)(4) and 

18 477(b)(4), subject to subparagraphs (B) and 

19 (C). 


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1 ‘‘(B) TABLE FOR INDEPENDENT STU2 DENTS.—For each academic year after aca3 demic year 2018–2019, the Secretary shall de4 velop the revised table of income protection al5 lowances by increasing each of the dollar 

6 amounts contained in the table of income pro7 tection allowances under section 477(b)(4) by a 

8 percentage equal to the estimated percentage 

9 increase in the Consumer Price Index (as deter10 mined by the Secretary for the most recent cal11 endar year ending prior to the beginning of the 

12 academic year for which the determination is 

13 being made), and rounding the result to the 

14 nearest $10.’’; and 

15 (2) in paragraph (2), by striking ‘‘shall be de16 veloped’’ and all that follows through the period at 

17 the end and inserting ‘‘shall be developed for each 

18 academic year after academic year 2018–2019, by 

19 increasing each of the dollar amounts contained in 

20 such section for academic year 2018–2019 by a per21 centage equal to the estimated percentage increase 

22 in the Consumer Price Index (as determined by the 

23 Secretary for the most recent calendar year ending 

24 prior to the beginning of the academic year for 


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1 which the determination is being made), and round2 ing the result to the nearest $10.’’. 

3 SEC. 11. INCREASING THE FEDERAL PELL GRANT AUTO4 ZERO THRESHOLD. 

5 Section 479(c) (20 U.S.C. 1087ss(c)) is amended— 

6 (1) in paragraph (1)(B), by striking ‘‘$23,000’’ 

7 and inserting ‘‘$34,000’’; 

8 (2) in paragraph (2)(B), by striking ‘‘$23,000’’ 

9 and inserting ‘‘$34,000’’; and 

10 (3) in the matter following paragraph (2)(B), 

11 by striking ‘‘adjusted according to increases in the 

12 Consumer Price Index, as defined in section 478(f)’’ 

13 and inserting ‘‘annually increased by the estimated 

14 percentage change in the Consumer Price Index, as 

15 defined in section 478(f), for the most recent cal16 endar year ending prior to the beginning of an 

17 award year, and rounded to the nearest $1,000’’. 

18 SEC. 12. RAISING THE TOTAL SEMESTERS OF FEDERAL 

19 PELL GRANT ELIGIBILITY. 

20 Section 401(c)(5)(A) (20 U.S.C. 1070a(c)(5)(A)), as 

21 amended by section 5, is further amended by striking 

22 ‘‘12’’ each place the term appears and inserting ‘‘14’’. 

23 SEC. 13. CONFORMING AMENDMENTS. 

24 The Act (20 U.S.C. 1001 et seq.) is amended— 


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1 (1) in section 401A(d)(1)(B)(i) (20 U.S.C. 

2 1070a–1(d)(1)(B)(i)), by striking ‘‘section 

3 401(b)(2)(B)’’ and inserting ‘‘section 401(b)(2)’’; 

4 (2) in section 402D(d)(1) (20 U.S.C. 1070a– 

5 14(d)(1)), by striking ‘‘section 401(b)(2)(A)’’ and 

6 inserting ‘‘section 401(b)(1)’’; 

7 (3) in section 420R(d)(2) (20 U.S.C. 

8 1070h(d)(2)), by striking ‘‘subsection (b)(1), the 

9 matter following subsection (b)(2)(A)(v),’’; 

10 (4) in section 435(a)(5)(A)(i)(I) (20 U.S.C. 

11 1085(a)(5)(A)(i)(I)), by striking ‘‘under section 

12 401(b)(2)(A)’’ and inserting ‘‘, as appropriate, 

13 under section 401(b)(2)(A) (as in effect on the day 

14 before the effective date of the Pell Grant Preserva15 tion and Expansion Act) or section 401(b)(1)’’; 

16 (5) in section 483(e)(3)(A)(ii) (20 U.S.C. 

17 1090(e)(3)(A)(ii)), by striking ‘‘section 

18 401(b)(2)(A)’’ and inserting ‘‘section 401(b)(1)’’; 

19 (6) in section 485E(b)(1)(A) (20 U.S.C. 

20 1092f(b)(1)(A)), by striking ‘‘section 401(b)(2)(A)’’ 

21 and inserting ‘‘section 401(b)(1)’’; and 

22 (7) in section 894(f)(2)(C)(ii)(I) (20 U.S.C. 

23 1161y(f)(2)(C)(ii)(I)), by striking ‘‘section 

24 401(b)(2)(A)’’ and inserting ‘‘section 401(b)(1)’’. 


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1 SEC. 14. EFFECTIVE DATE. 

2 Except as otherwise provided, this Act, and the 

3 amendments made by this Act, shall take effect beginning 

4 on July 1, 2018, and shall apply to grant and award deter5 minations made under title IV of the Higher Education 

6 Act of 1965 (20 U.S.C. 1001 et seq.) beginning with the 

7 2018–2019 award year. 

Æ 


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